Month: July 2022

By Aurore Barlier, published on July 12, 2022, at 10:32 a.m.

Glass Partners Solutions (GPS) appears to have developed a taste for private equity, having quadrupled its revenue in six years with the support of NextStage AM. The flat-glass distribution and processing group is now set to repeat the experience, this time with the backing of iXO Private Equity and Arkéa Capital Managers. The two co-lead investors are joined by Crédit Agricole PG Développement and NextStage AM, which is reinvesting.
The €50 million equity investment, following a process organized by Lincoln, is also accompanied by senior debt in two tranches, which according to our sources is for an amount almost equivalent to the equity investment. The debt is being provided by Arkéa Banque Entreprises et Institutionnels, Banque Populaire Aquitaine Centre Atlantique, and Caisse d’Epargne Aquitaine Poitou-Charentes.
Founder and CEO Elie Benmergui, who previously held two-thirds of the capital alongside NextStage, is retaining a majority stake. The LBO also brings key executives into the group’s shareholder base.

Annual growth of 18%

When GPS was founded in Anglet in 2002, it initially focused on flat-glass distribution. The business was first expanded in 2012 through diversification into glass processing, and again in 2019 with a move into the installation of small-scale, technically complex architectural projects. Now controlling the entire value chain, apart from flat-glass manufacturing, the group says it can deliver more than 2,500 products within 24 hours through its 86 storage locations across Europe, either directly operated or through partners, serving players in the construction industry (façade contractors, aluminum fabricators, glaziers, joiners, etc.) as well as the rail sector.
Its longstanding presence in the French Basque Country, as well as in Spain (since 2003) and Portugal (since 2005), enables it to serve 1,000 customers and generate more than €130 million in revenue, with average annual growth of 18% over the past six years.

Doubling in size within four years

Now the leading independent European group in its sector, GPS employs 350 people across around a dozen subsidiaries. Despite its significant working-capital requirements, the group, which generates a double-digit margin, has largely avoided the supply-chain issues faced by some of its peers.
“By favoring diversified, high-quality sourcing from a range of independent producers, GPS consistently has access to significant volumes, including during periods of rising raw-material prices such as the one we are experiencing today,” says Thomas Dubourdieu, Investment Director at Arkéa Capital.
Over the next four years, the group now aims to double in size by developing all of its business lines, “primarily through organic growth, while remaining open to potential acquisition opportunities,” the investor says.

Transaction Participants

Target Company: GLASS PARTNERS SOLUTIONS
Acquirer or Investor: IXO PRIVATE EQUITY, Olivier Athanase, Hasnaa Hafid, Pierre-Yves François, ARKEA CAPITAL, Thomas Trideau, Thomas Dubourdieu, Guillaume Lacourcelle, NEXTSTAGE AM, Jean-David Haas, Aloys de Fontaines, Gaëtan Leenhardt, CREDIT AGRICOLE MUTUEL PYRENEES GASCOGNE, Denis Vilarinho, Jean-Michel Mindeguia, FOUNDERS, Elie Benmergui, MANAGERS
Seller: NEXTSTAGE AM, Jean-David Haas, Aloys de Fontaines, FOUNDERS, Elie Benmergui, MANAGERS
M&A Advisor: LINCOLN INTERNATIONAL, Ludovic Rodié, Mathieu Nguyen, François-Xavier Engel, Louise Alix
Corporate Law Firm: JOFFE & ASSOCIÉS, Thomas Saltiel, Antoine Lamy
Financing Law Firm: JEAUSSERAND AUDOUARD, Marie-Paule Noël
Acquirer’s Corporate Counsel: LAMARTINE CONSEIL, Olivier Renault, Maeva Dumas Suire

[CFNEWS article by Anne Joly, published on June 21, 2022, at 6:47 p.m., updated on June 22, 2022, at 9:18 p.m.]

Updated June 22, 2022 — Chamatex welcomes a new financial partner. Acquired in 2011 by Gilles Reguillon, the Ardèche-based group, which designs and manufactures technical fabrics, had already reshuffled its shareholder base in 2020, bringing Bpifrance and Etoile on board while also allowing a handful of executives to acquire stakes (see below). The group is now strengthening its shareholder base with Yotta Capital, whose investment team had been highly interested two years ago but was unable to participate after failing to complete its fundraising at the time. Today, Yotta is investing through its vehicle dedicated to the industry of the future, marking its sixth investment. It is contributing €5 million to a capital increase aimed in particular at supporting the ramp-up of the Industry 4.0 facility the group commissioned last year and, more broadly, its plans to reshore textile manufacturing. At the same time, seven company executives are joining the holding company, which already brings together nine managers. Management retains a majority stake in the capital.

Taking Control of Production

A major regional textile group battered by successive crises that weakened the sector, Chamatex pivoted toward technical fabrics to return to growth, quintupling its revenue over ten years to €35 million. It now supplies the luxury luggage, personal protective equipment, home furnishings, motorsport racing suits, and, last but not least, sportswear and footwear segments.
The group invested around €10 million last year to manufacture sports shoes in France, building a fully automated facility, ASF 4.0, operated by a company of the same name. Chamatex brought several of its industrial partners into the company’s shareholding, led by Salomon alongside Babolat and Millet (15% of the capital), as well as industrial partner Zebra and a pool of financial investors (Centre Technique du Cuir, business angels, etc.).
Designed to produce 300,000 to 400,000 pairs of sports shoes a year, the production facility will be expanded at a cost of around €5 million, doubling its capacity within five years. The goal is to produce 100% made-in-France footwear using its Matryx technical fabric.

Doubling Revenue

“We are supporting Chamatex in its organic growth projects by financing the expansion of the Industry 4.0 facility and strengthening the industrial capabilities of the group’s various sites, as well as in its external growth initiatives,” explains Benoit Perrot, co-founder and Managing Partner of Yotta.
The group, which acquired Rocle, a specialist in upholstery fabrics, in 2019 and Toptex Cube, a start-up that developed a seamless textile assembly technology, in 2021 (see below), is looking to strengthen its control over its supply and production chain. It is also exploring the possibility of setting up a Matryx facility in Vietnam, close to footwear manufacturers, following the establishment of a production center in Tunisia through Toptex Cube.
“This modern manufacturing facility, which uses laser-cutting and ultrasonic-welding technologies, is expected to employ around 100 people once fully operational. It complements Chamatex’s industrial capabilities by enabling the group to target the entry-level segment of sports products,” explains Julian Dykiert, Managing Director of the 280-employee group. These projects are expected to help the company double its revenue within three to five years.

Transaction Participants

Target Company: CHAMATEX GROUP
Acquirer or Investor: YOTTA CAPITAL PARTNERS, Benoît Perrot, Pierre Dejoux, Daniel Javed, Nina Hervé
Corporate Law Firm: PERICLES AVOCATS, Frédéric Chaillet, Eve-Marie Suet
Acquirer’s Corporate Counsel: JOFFE & ASSOCIÉS, Thomas Saltiel, Camille Malbezin, Catherine Diril
Acquirer’s Legal and Tax Due Diligence: JOFFE & ASSOCIÉS, Thomas Saltiel, Camille Malbezin, Catherine Diril; MAZARS SOCIETE D’AVOCATS, Marine Cambolin, Claire Maisonneuve, Mathilde Guillermic
Acquirer’s Intellectual Property Due Diligence: JOFFE & ASSOCIÉS, Margaux Parmentier

CFNEWS article by Aurore Barlier, published on July 8, 2022, at 9:53 a.m

Japhy, Tomojo, Ultra Premium Direct… The pet food sector has given rise to a host of new players in recent years, some of which have carved out a strong position around healthy nutrition. That is the focus of Pépette, founded in 2019, which is now raising its second funding round with the ambition of becoming the European leader in a new market: fresh food for dogs and cats.
Following a €1.1 million seed round in 2020, the Paris-based company has now raised €3.4 million in cash, with Rothschild & Co having been brought in to seek investors starting last November. The round — complemented by €1.6 million in non-dilutive financing from Bpifrance and Banque Populaire — is being led by Swiss-origin agrifood fund Ambrosia and Go Capital through its Loire Valley Invest and Financière Vecteur funds.
A number of business angels are also joining the round, including Augustin Paluel-Marmont (Michel & Augustin), Patrick Asdaghi (FoodChéri and Seazon), Benjamin Perot (Monsieur Marguerite), Franck Bonfils (Juste Bio), and Sebastien De Lafond (Meilleurs Agents), who also participated in the seed round. The transaction values Pépette at around €15 million.

A 100% Digital M

Offered on a subscription basis, Pépette’s services rely on a proprietary algorithm that determines a tailored feeding plan designed to meet the specific energy needs of each dog or cat. The personalized nutrition brand then prepares meals using ingredients fit for human consumption and delivers them directly to customers.
“Pépette’s offering addresses a genuine need around reintroducing fresh food into pet nutrition,” says Benjamin Osdoit, Managing Director at Transaction R & Co, noting that nearly one-quarter of dog and cat owners give their pets fresh food.
With 12 employees — rising to 20 by September — the company currently generates more than €100,000 in monthly revenue. “Made from fresh, human-grade ingredients, this traditional meal model, known as ‘home-prepared diets,’ provides significantly higher nutritional value and is much better absorbed by animals from a digestive standpoint,” explains Marine Thersiquel, founder of the industrial start-up, whose approach is positioned as the opposite of kibble, which she considers highly processed and high in carbohydrates and lower-protein ingredients such as carcasses, cartilage, and feet.

Prioritizing Circularity

However, the company’s main objective is to bring production in-house by establishing its own facility in the Centre-Val de Loire region within the next 24 months. This will allow it to regain control over the value chain and work on supply-chain initiatives.
“For example, we are considering sourcing undersized vegetables that are perfectly fit for human consumption. On the protein side, we are looking at local sourcing while avoiding competition with products intended for human consumption, for example by prioritizing underutilized animal parts that are rarely used in human cooking,” explains Marine Thersiquel.
This approach could give Pépette another competitive edge. “By bringing production in-house, the company will be able to continue developing its industrial expertise while maintaining full control over the entire value chain, thereby creating a genuine barrier to entry. It is also key to building a profitable business model that can be sustained over the long term,” adds Benjamin Osdoit.

A Market to Build in Europe

In the United States, fresh pet food is already the fastest-growing segment, taking significant market share from traditional kibble manufacturers. The acquisition of Nom Nom Now — one of the pioneers in the market — by Mars for approximately $1 billion is a case in point.
Pépette’s founder, however, is not yet aiming quite that high. Over the next five years, Marine Thersiquel hopes to grow the brand’s revenue to several tens of millions of euros and build a subscriber base of more than 150,000 customers, establishing Pépette as a European leader in a market that remains largely untapped, despite the presence of a few young companies such as UK-based Butternut Box and Belgian player Dogchef.
Although the brand is currently sold exclusively online, it is open to partnering with distributors — many of which have already approached the company — to offer its products through dedicated shop-in-shop corners. “The key is to continue providing our customers with advice and enhanced services, as they are very receptive to educational content,” says the founder.

Transaction Participants

Target Company: PEPETTE
Acquirer or Investor: AMBROSIA INVESTMENTS, Adrien Tardy, Abel Rossignol, GO CAPITAL, Alexis Ménard, BUSINESS ANGELS, Augustin Paluel-Marmont, Patrick Asdaghi, Benjamin Perot, Sébastien de Lafond
Corporate Law Firm: CHARLES RUSSELL SPEECHLYS, Renaud Ferry, Chloé Huertas

As part of its drive to develop low-carbon recreational boating, Fountaine Pajot Group is strengthening its partnership with Alternatives Énergies by acquiring a majority stake in the company alongside Julian Hélène, its Managing Director, and EVE System, a long-standing partner.

Alternatives Énergies has extensive experience in developing and integrating zero-emission and hybrid propulsion and energy systems for marine applications, including electro-solar-powered passenger ferries and tourist shuttles, hybrid multi-purpose barges, and hydrogen range extenders. For more than 20 years, Alternatives Énergies has been innovating to design clean, tailor-made solutions for passenger boats and workboats.

Through this investment, Fountaine Pajot aims to give Alternatives Énergies access to the recreational boating market and leverage the unparalleled expertise of Julian Hélène, Managing Director, and his teams to accelerate its Odyssea corporate initiative, which targets carbon neutrality by 2030.
Alongside the acquisition, Fountaine Pajot has begun sea trials of its first electric catamaran developed in collaboration with Alternatives Énergies: the Aura 51, equipped with an electric propulsion system combining the expertise of Alternatives Énergies and Fountaine Pajot. Through this strategic partnership, Fountaine Pajot can offer its customers a complete, fully integrated electric solution, including the motor unit, battery bank, power electronics, and integrated management of onboard and propulsion systems. The boat will be unveiled to the world for the first time at the Cannes Yachting Festival. The Group’s ambition is to gradually expand its offering to meet strong customer demand.

Philippe Pallu de La Barrière, founder of Alternatives Énergies, and Julian Hélène, Managing Director, said: « Fountaine Pajot’s investment represents a tremendous opportunity to extend and accelerate, through an industrial vision and complementary projects, the pioneering developments we have been pursuing for more than 20 years to enable cleaner, lower-emission navigation. »

Mathieu Fountaine, Deputy CEO of Fountaine Pajot, added: « We are extremely proud to partner with Alternatives Énergies and very enthusiastic about this technical collaboration. This partnership perfectly reflects our ambition to become a pioneer in the environmental transition of the marine industry. »

Franck Briand, who has led GPG Granit since 2004, is handing over the reins of the designer of memorial monuments to current CEO Alexis Jubert. The succession process, which began operationally five years ago, is now being formalized through an OBO backed by a pool of financial investors.

Together, Siparex Midcap (lead investor), Unexo, Bpifrance, and Sodero Gestion are becoming majority shareholders alongside Alexis Jubert, who is significantly increasing his stake. The company’s long-standing CEO, meanwhile, is selling his shares.

Based in Saint-Jacques-de-la-Lande, Brittany, GPG Granit designs tombstones and cremation memorials, which are manufactured through a network of partners in France and Asia. Nearly 15,000 monuments are marketed each year to independent funeral service operators.

The company employs around 60 people and has achieved double-digit annual growth in recent years, reaching €25 million in revenue in 2021. It has also invested in several digital tools, including a configurator that allows families to design and visualize a monument before placing an order. With a particularly strong presence in northern France, the group plans to expand its sales presence across the rest of the country.

Transaction Participants:

Siparex: Pierre Bordeaux Montrieux, Matthieu Adoir, Claire Morel

Bpifrance: Marc Prévot, Alain Fakhoury

Unexo: Antoine Martiarena, Lauranne Le Bourvellec, Aurélie Hervagault

Sodero Gestion: Romain Engrand

Investor Advisors — Financial Due Diligence: Eight Advisory (Bertrand Perrette, Jean-Baptiste Blanco) ; juridique : Ratheaux (Gaétan de la Bourdonnaye, Marc Pretat)

Seller Advisors — Financial: Edmond de Rothschild Corporate Finance (Philippe Flament, Julien Donarier) ; juridique : Augus Avocats (Jean-Malo Heuze, Marion Bottereau) ; Financial Due Diligence: Oderis Conseil (Julien Passerat, Lan Chau)

Target Company Advisors — Financial: Mazars (Matthieu Boyé, Matthieu Maquet) ; Legal: Joffe & Associés (Christophe Joffe, Charlotte Viandaz, François Galéa)

Lenders’ Legal Counsel: CVS Avocats (André Watbot, Charles-Henri Prioul)

Senior Debt: Crédit Agricole Ille et Vilaine, Crédit du Nord, CIC, BNP Paribas

Fountaine-Pajot Group Entrusts Construction of Its Power Catamarans to Couach Shipyard. An Industrial Solution to Meet Demand for Catamarans from the La Rochelle-Based Build

Fountaine-Pajot’s MotorYachts Range to Be Built at Couach

Fountaine-Pajot Group has announced the signing of a subcontracting agreement with Couach Shipyard for the production of the power catamarans in its Motor Yachts range. The three powercat models — MY4S, MY5, and MY6 — will be built at the shipyard’s facility in Gujan-Mestras on the shores of the Arcachon Basin. The contract is scheduled to begin in October 2022, with the first boats due for delivery in November 2022.

Freeing Up Capacity at Fountaine-Pajot’s Facilities

Like the recreational boating industry as a whole, and the multihull segment in particular, Fountaine-Pajot is facing strong demand. The group therefore wanted to free up production capacity at its facilities to meet orders for sailing yachts. The La Rochelle site will now focus on building large sailing catamarans, while mid-sized multihulls will continue to be produced in Aigrefeuille and Dufour monohulls at its dedicated facility in Périgny.

Expertise in Motorboats and Subcontracting

For Couach Shipyard, this type of subcontracting activity is nothing new. The Gironde-based shipyard, which employs 250 people, is well known for its expertise in yachting and military vessels. It regularly provides similar subcontracting services in the latter sector, producing significant volumes of small interceptor boats on behalf of third parties.
Couach is also leading a project to renew the SNSM’s fleet of rescue boats in partnership with Zodiac Nautic, with which the shipyard shares common ownership links.

Hygie 31, the holding company of Lafayette Conseil (headquartered in Toulouse, Haute-Garonne), a network of pharmacies and optical stores, has acquired Barcelona-based Ecoceutis, which comprises 156 pharmacies and generates €200 million in revenue.

Following its acquisition of Cocooncenter in 2021 and its partnership with Pharmacorp earlier this year, Hygie 31, owner of the Pharmacie Lafayette brand, has acquired Ecoceutics, a Spanish pharmacy network.
Ecoceutics operates 156 pharmacies in a Spanish market comprising around 20,000 pharmacies, generating €22 billion in annual revenue and growing by 4% a year.
“We are the first French pharmacy network to expand into Europe. And Spain is only the first step!” says Hervé Jouves, President of Hygie 31.
“Ecoceutics” — a name combining “economics” and “pharmaceutics” — is a well-established brand in Spain. As a result, the Spanish pharmacies will not adopt the “Pharmacie Lafayette” brand, but will instead use the tagline “healthcare for all.”

Hervé Jouves, President of Hygie 31, the holding company behind the Pharmacie Lafayette network, has just completed his third major external growth transaction. Following the acquisition of Cocooncenter, an online parapharmacy retailer, in 2021 and the partnership with Gener+ earlier this year, Hygie 31 — with 700 member pharmacies, 52 optical stores, and 24 medical equipment stores, generating €1.7 billion in revenue — has announced the acquisition of Spanish company Ecoceutics.

156 pharmacies generating €200 million in sales

It is one of Spain’s leading pharmacy groups and one of the country’s major pharmacy brands, with 156 pharmacies generating €200 million in sales. Headquartered in Barcelona, Ecoceutics operates primarily in the Barcelona and Girona regions and the Balearic Islands. The group is owned by 27 pharmacists and employs 18 people.
Through this strategic combination, Toulouse-based Hygie 31 becomes the first French player to expand its model into Europe. “The Spanish market, worth €22 billion, is very similar to the French market, growing by 3% to 4% annually and showing similar growth dynamics. Partnering with Ecoceutics was therefore a natural choice to strengthen our growth momentum. This latest acquisition makes us the first French pharmacy group to establish a presence outside France,” said Hervé Jouves.
By increasing their combined purchasing volumes, the newly formed group aims to negotiate better commercial terms with pharmaceutical laboratories on behalf of its member pharmacists. In addition, Hygie 31 will leverage Ecoceutics’ more advanced IT network infrastructure to accelerate the development of new digital tools.

A major business opportunity is opening up for Grenoble-based start-up eLichens, which develops high-end digital air-quality sensors and environmental digitization software. The company announced this week that Japanese firm New Cosmos Electric, a specialist in the design and sale of gas detectors, is acquiring a minority stake in the start-up.
Listed on the Tokyo Stock Exchange, the Japanese company is investing approximately $10 million in eLichens. The investment will also enable New Cosmos Electric to integrate eLichens’ sensors into its new gas detectors.
For eLichens, the deal provides greater access to the Japanese market, including the opportunity to distribute its “Aura CO2” monitoring station there. This represents another step toward expanding internationally.
Between 2016 and 2018, the start-up raised a total of €12 million from several investors, including Sofimac Innovation, Emertec Gestion, Aereco, Bpifrance (through its Ville de Demain fund), BNP Paribas Développement, and several business angels.

• Bpifrance Investissement: Axel Piriou, Tiphaine Gonnet
• Caisse d’Epargne Île de France Capital Investissement: Guillaume Guin
• Sopromec Participations: Stéphane Roy, Stéphane Taunay

• Banque Populaire Rives de Paris (Arranger): Aude El Gemayel, Celian Dequesne, Chekib Bensalah
• Caisse d’Epargne Île de France: Antoine Di-Folco

• Investors’ Legal Counsel: Joffe & Associés – Virginie Belle, Romain Soiron, Paddy Pascot
• Debt & Financing Advisor: Le Comptoir Financier – Damien Mina
• Company’s Legal Counsel: Placktor Avocats – Olivier Placktor
• Financial Due Diligence Advisor: Cofigex – Jean-Charles Norris, Agathe Leclerc